Today we’re going to speak about the best way to put a cannabis business application together. The agenda for today is essentially we’re going to start off with exactly what makes a software successful and then we’re likely to break it down into sections with financials, location, architects, security standard operating procedures, staffing, community benefits, labor, and a lot of other activities that we’re going to tie up neatly ultimately.
Only a few things to provide you with an idea of what we should do right here at Green Growth CPAs. Perform tax preparation and we’ve completed over 500 annual tax statements for cannabis operators spread across all verticals, so that’s dispensary distribution, cultivation, manufacturing, delivery, and testing. We also have over 300 clients based in various states. We have now clients from California, Colorado, Michigan, Oregon, and Washington.
We’ve also performed over a dozen audit related projects during the last year and we’re expected to hit seven digits in revenues in our second full business year. Perform want you to find out that we have a thorough and deep understanding of tax compliance and assurance related requirements for your cannabis industry and this includes cannabis licensing. We can help you with tax preparation and planning, auditing and assurance, business plans, and other things linked to operating a business within the cannabis industry.
So like I said, we’re going to begin with what makes a software successful. I believe what all applicants prospective and current applicants really learn as you go along would be that the instructions and understanding them is approximately 80 % of passing a successful application. You need to know what exactly the city or the state wants, how they wanted delivered. A lot of the time, you already know, the headers of the requirements could be misleading.
Like I said, you understand, they might say, oh, we need your own business plan, but if you browse the requirements are what they’re asking for. It provides nothing concerning your typical idea of what a business plan really is. So half the battle or over half of the battle is absolutely understanding what will they be requesting, how do they really want me to submit this and then submitting it. You’re planning to wish to thoroughly address every portion of the application in more detail. You want to make certain that you understand the requirements. Although most of the time applications do have a similar requirements. They could want specifics that other applications don’t.
As an example, let’s say Lynwood, the metropolis of Lynwood in California. They really want a cannabis strategic business plan that will require you to demonstrate and explain your everyday operations, including cash handling practices, a little bit of security, some inventory and record keeping where versus the town of LA which may say, oh, we wish your own business plan that wants one to show financials what your company’s mission and vision is, which is really what you’d expect in a business plan. So just be careful and look at the descriptions of the headers because sometimes the headers may be misleading.
Next you’re going to need to surround yourself with all the right people. You need to show in the application you have the correct team in place to run an effective operation. Usually they will demand the owners or licensees to incorporate a quick writeup demonstrating experience in either the cannabis industry or related field, and if you don’t have this experience, you’re planning to desire to find people who do and include them in your team.
You’re also likely to want solid financial projections and security measures to stop fraud. Everbody knows, cannabis is actually a highly regulated industry and these are the basic two pillars that most states, if not completely of them, want you to pay attention to. You’re also planning to want to vet all your partners, do your due diligence. You are going to need to go by way of a background check which background check is required by all cities and states.
Another vital thing that you should consider before even trying to get cannabis staffing plan is you’re likely to want to ensure that you have the funds for to build out and operate for at least six months to some year. We obtain lots of inquiries from potential clients who want to enter into the cannabis industry and they’re always blown away by the amount of money actually is put into building out and operating a cannabis business before it might be profitable and also you know, there’s no other way across the financials, you already know, cities and states is not going to issue permits to people that can’t demonstrate a monetary ability to start up a business whilst keeping it running. And 2nd, if someone. Perform get a lot of clients that do not have experience in the cannabis cannabis industry.
On the contrary they have got experience with business, successful business, and that is certainly something that cities examine also because not everybody could have cannabis industry experience because it is illegal. It had been illegal on the state level and is now legal. So you know, if you are able to demonstrate some sort of experience with the cannabis industry, you already know that’s a self revealing, but when you don’t, then you should consider putting a group of people together that may show strengths in business, finance, HR, that every add up to a business.
As an example. We get lots of inquiries from people that wish to become cannabis business operators that have no experience even running their particular business therefore they could have some funds, you know, that they’ve inherited or or some friends, a group of friends that, hey, you know, decide 1 day that, hey, we must get into the cannabis industry and in case we pool our money together, then we will surely start one end and sometimes they actually do have enough money.
But the question is who are they members? And a lot of enough time, you might need to pay to outsource for these qualified staff. If you’re going to do get into medical cannabis, you may want to possess a doctor or even a pharmacist in some way, shape or form on your own staffing plan. At the very least for the first six to one year. This always strengthens your odds of being issued a permit and a license simply because you know even if you possess the money, you should have the employees and also the members to trudge forward successfully in this particular industry and remain compliant because which is a really big issue…compliance. And when track and trace is fully operational and vodnsg over the board, compliance will be among the big determinants of if cannabis business is going to be successful. So if I were you, the best thing to perform is to go into your bank accounts or maybe your asset portfolios and find out precisely how much money you may have, how much money you’re likely to need to raise, and how much cash you’re likely to need to put into this cannabis business. Because it’s not cheap.
You’re also going to wish to have a really solid comprehension of state and local regulations. Usually, applicants will hire consultants to achieve this for them. Regulations could be tricky just because they’re very vague. There’s plenty of wiggle room, so you’re likely to desire to find somebody that may be either element of your team that will help you with compliance continuing to move forward, or you’re likely to want to engage the assistance of a company or a consulting group that will do this to suit your needs like us.
The final thing that you’re really gonna want to consider before you apply for a cannabis business licenses is wondering what will almost certainly set my business apart from everybody else’s? And plenty of enough time this is achieved through, you already know, giving back to a town, but it’s more about community integration, you understand, flipping the concept of cannabis is bad into how cannabis can certainly be useful, the way it can reach out and touch lives, you already know, throughout the board, whether it’s for patients or consumers and particularly for that community where you’re going to put together.